Auction results may be annulled 'if bid too low'
The National Broadcasting and Telecommunications Commission has threatened to consider invalidating the results of the upcoming auctions of 900MHz and 1,800MHz licences if it is found that the final bids are below 100 per cent of the full spectrum values.
The NBTC will auction two telecom licences on the 1,800-megahertz spectrum on November 11 and two 900MHz licences on November 12. The starting price for a 1,800MHz licence is Bt15.912 billion and Bt12.864 billion for a 900MHz licence. Both of those figures are 80 per cent of the value of the relevant spectrum, that is, Bt19.89 billion for 1,800MHz and Bt16.08 billion for 900MHz.
Takorn Tantasith, secretary-general of the NBTC, said it was trying to prevent bid collusion as it wants to see meaningful competition. The same four companies will be bidding for both the 1,800MHz and the 900MHz licences.
"If all four are able to secure a licence and a winning bid is not over 100 per cent of the full spectrum value, the NBTC could cancel all of the results. However, we believe that these auctions should see fierce competition," he said.
The NBTC telecom committee yesterday announced the names of the four companies that are pre-qualified to bid for two licences on the 900MHz spectrum. They are Advanced Wireless Network of Advanced Info Service; DTAC TriNet Network, a unit of Total Access Communication; True Move H Universal Communication, which is part of True Corp; and Jasmine International’s Jas Mobile Broadband unit.
According to the NBTC’s regulations for the 1,800MHz auction, each participant can raise the offered price at a fixed value of 5 per cent of the minimum, or Bt796 million, per bid. Once the bid reaches 100 per cent of the full spectrum value, or Bt19.89 billion, the offers can be raised at a fixed value of 2.5 per cent of full spectrum value, or Bt398 million, per bid.
The bidding will run from 10am to 9pm. Each round of bidding will last 20 minutes.
The NBTC has calculated that if the auctions last all day, the prices will end at around Bt31.036 billion for each 1,800MHz licence and Bt25.1 billion for each 900MHz licence.
For the 900MHz licences, each participant can raise the offered price by 5 per cent of the minimum, or Bt644 million, per bid. Once the bid reaches 100 per cent of full spectrum value, or Bt16.08 billion, the offered prices can be raised by 2.5 per cent of full spectrum value, or Bt322 million, per bid.
